The Nonparametric Risk-Adjusted Efficiency Measurement: An Application to Taiwan's Major Rural Financial Intermediaries

Ching-Cheng Chang

American Journal of Agricultural Economics, 1999, vol. 81, issue 4, 902-913

Abstract: In this article, a nonparametric approach is used to incorporate risk into the measurement of technical efficiencies of the major financial intermediaries in rural Taiwan. Risk is treated as a joint but undesirable output given the fact that various regulatory actions may prevent its free disposability. Three risk indicators (nonperforming loans, allowance for loan losses, and risky assets) are employed alternatively in the empirical work. Results suggest that all three risk constraints are binding. Regulations on controlling risky assets and loan loss reserves are effective but more burdensome than those on controlling loan quality. Copyright 1999, Oxford University Press.

Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (26)

Downloads: (external link)
http://hdl.handle.net/10.2307/1244333 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:81:y:1999:i:4:p:902-913

Access Statistics for this article

American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu

More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().